Capital raising rush far from over

Original article by Joyce Moullakis
The Australian – Page: 13 & 19 : 1-Jul-20

Data from Refinitiv shows that Australian-listed companies raised $US14.9bn ($21.8bn) via the issuance of new shares in the June quarter, as they sought to boost their balance sheets in response to the coronavirus pandemic. This is the highest quarterly total since late 2010, while some $US18.8bn worth of new shares were issued in the first half of calendar 2020. Fund managers generally expect the capital raisings momentum to be maintained in the second half. Meanwhile, the total value of mergers and acquisitions fell to $US24.9bn in the first half of 2020, compared with $US48.2bn for the first half of 2019.

CORPORATES
REFINITIV AUSTRALIA PTY LTD

Secondary capital raisings ease on hope of reopening

Original article by Glenda Korporaal
The Australian – Page: 20 : 7-May-20

Data from ASX Limited shows that IPO activity slowed significantly in April, with seven new listings raising a combined $97m. This compares with the $1.2bn that was raised from new listings in April 2019. In contrast, the total value of capital raisings by companies that are already listed rose from just $2.3bn in April 2019 to $13.3bn. Max Cunningham, the executive general manager of listings and issuer services, expects the slowdown in IPOs to continue while coronavirus restrictions remain in place.

CORPORATES
ASX LIMITED – ASX ASX

Virus-plagued NAB seeks $3.5bn

Original article by Richard Gluyas
The Australian – Page: 13 & 17 : 28-Apr-20

National Australia Bank has posted a 2019-20 interim net profit of $1.3bn, compared with $2.7bn previously. Loan impairments rose to $1.2bn due to a sharp increase in provisions due to the coronavirus, while NAB has reduced its interim dividend from $0.83 per share to just $0.30. NAB shares were suspended from trading on 27 April pending a $3.5bn capital raising, which comprises a $3bn institutional placement and a $500m share purchase plan. Meanwhile, NAB is bearish about the outlook for the economy and unemployment in the near-term.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Crisis spurs a rush to raise capital

Original article by Ben Wilmot, Glenda Korporaal, Perry Williams
The Australian – Page: 13 & 17 : 28-Apr-20

National Australia Bank, Charter Hall Retail REIT and Monash IVF are among the latest companies to undertake capital raisings. Australian-listed companies have now raised more than $15bn from investors during the coronavirus pandemic, and Simon Ranson of JP Morgan expects this trend to continue. However, some companies have attracted criticism for giving preference to certain investors in the allocation of new shares.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CHARTER HALL RETAIL REIT – ASX CQR, MONASH IVF GROUP LIMITED – ASX MVF, JP MORGAN AUSTRALIA LIMITED

Oil Search eyes $1bn raising

Original article by Perry Williams
The Australian – Page: 16 : 7-Apr-20

Shares in Oil Search have been placed in a trading halt until 14 April, pending an announcement regarding a capital raising. The oil and gas producer is expected to raise at least $1bn to strengthen its balance sheet in the wake of a sharp fall in the crude oil price. The slump has weighed on Oil Search’s shares, which have fallen in value from more than $7 at the start of 2020 to just $2.73, reducing its market capitalisation to $3.89bn. The new shares may offered at around $2 apiece.

CORPORATES
OIL SEARCH LIMITED – ASX OSH

Bankers ready for GFC-style raising spree

Original article by Anthony Macdonald, Sarah Thompson
The Australian Financial Review – Page: 15 & 20 : 6-Apr-20

Australian companies are looking to equity funding to assist them through the COVID-19 pandemic, and private equity firms are eager to participate in possible transactions. The ASX has temporarily amended its listing rules to allow companies to raise more funds via non-renounceable rights issues and share placements, while coronavirus-impacted companies that are tipped to undertake equity raisings include Virgin Australia, Sydney Airport and Tabcorp.

CORPORATES
ASX LIMITED – ASX ASX, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, SYDNEY AIRPORT – ASX SYD, TABCORP HOLDINGS LIMITED – ASX TAH, WEBJET LIMITED – ASX WEB, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, CORPORATE TRAVEL MANAGEMENT LIMITED – ASX CTD, BORAL LIMITED – ASX BLD, JAMES HARDIE INDUSTRIES PLC – ASX JHX, KATHMANDU HOLDINGS LIMITED – ASX KMD, NEXTDC LIMITED – ASX NXT, COCHLEAR LIMITED – ASX COH

More capital raisings on the cards: Goldman

Original article by Melissa Yeo
The Australian – Page: 27 : 6-Mar-20

Matthew Ross of Goldman Sachs says the coronavirus outbreak is likely to prompt more listed companies to undertake capital raisings in coming months, particularly ones that are close to breaching their debt covenants. Ross notes that the supply chains of many companies will be impacted by the virus, given the high level of dependence on imports from China, especially in the consumer goods sector.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD

Rio’s Kakadu uranium takeover faces blocking stake

Original article by Peter Ker
The Australian Financial Review – Page: 16 : 11-Feb-20

Zentree Investments has confirmed it will take part in a $476 million equity raising by Energy Resources Australia (ERA). ERA plans to use the money raised from the issue of new shares to finance the rehabiliation of uranium assets in the Northern Territory. Rio Tinto owns 68.39 per cent of ERA, and could boost its stake to over 90 per cent through the capital raising, as most of ERA’s minority shareholders are not expected to participate. This would allow it to move to move to compulsorily acquire the remaining ERA shares. Zentree currently owns 15.94 per cent of ERA, and can keep its stake at above 10 per cent if it buys around $48 million worth of new shares.

CORPORATES
ZENTREE INVESTMENTS, ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA, RIO TINTO LIMITED – ASX RIO

FAR moves closer to Senegal ambitions

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 20 : 11-Dec-19

FAR Limited has yet to confirm details of a capital raising, with its shares placed in a trading halt on 10 December pending an announcement. The equity raising is believed to include a $146m share placement and a $30m share purchase plan. The capital raising and a new debt facility will provide FAR with the funding needed to proceed with the Sangomar oil project in Senegal, in which it has a 15 per cent stake. The project is initially slated to produce about 230,000 million barrels of oil, commencing in 2023.

CORPORATES
FAR LIMITED – ASX FAR, WOODSIDE PETROLEUM LIMITED – ASX WPL, CAIRN ENERGY PLC

Rio’s ERA equity raising challenged

Original article by Brad Thompson
The Australian Financial Review – Page: 20 : 20-Nov-19

Zentree Investments has asked the Takeovers Panel to intervene in Energy Resources of Australia’s proposed $476m capital raising. The proceeds of the entitlement offer will be used to help meet the cost of rehabilitation work at the Ranger uranium mine in the Northern Territory. Zentree is concerned that the capital raising will allow Rio Tinto to increase its 68.4 per cent stake in ERA while gaining access to its tax losses and franking credits. Zentree is ERA’s second-largest shareholder.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ENERGY RESOURCES OF AUSTRALIA LIMITED – ASX ERA, ZENTREE INVESTMENTS PTY LTD, AUSTRALIA. TAKEOVERS PANEL